I have read Vid's guide a few times and keep picking up on new things. NOTE his hints that Shellac "deserves a spot in your toolbox"
I've been thinking about the same as I have an EM with drag that my bothers me. I do not see much discussion in repairing this area which is probably our first hint. Wood stain/shellac spot repairs are almost always noticeable. With cracked or flaking varnish the best option is to remove the old and redo.
My plan: IF/WHEN I decide to do a playfield restoration I will first try to sand and feather new stain to match. If that is ugly I will sand and re-stain the entire area. I am leaning heavily towards "if"
I guess it boils down to what you want out of the game OR how much you expect to recoup your cost if/when you sell it.